Oil and aquifers discovered in Italian Libya

Problem is ground water won't last forever and desalination or abandoning the settlements will become nessecary over time.
With 21st century technology they were pumping millions of tons per day. A couple of cubic kilometres per year, from an aquifer holding over a hundred thousand cubic kilometres of water. The best they could manage in the thirties would be like emptying a swimming pool with a teaspoon and their expectation would likely be that it would last centuries.

For comparison look at the equivalent in the US where no-one even thought about exhaustion or conservation until fairly recently https://en.wikipedia.org/wiki/Ogallala_Aquifer?wprov=sfti1
 
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